Irish Finance Minister Paschal.........>

GILT SUMMARY: Irish Finance Minister Paschal Donohoe has stated that changing

the UK prime minister does not alter the key Brexit issues and that the backstop

will not be changing. This conflicts with both Boris Johnson and Jeremy Hunt's

proposals which envisage scrapping the backstop - a move which EU sources have

rejected.

- The Sep-19 gilt future trades at 130.71, down 13 ticks from Monday's close and

14 ticks off the day's low; L-H: 130.57-131.07.

- Gilts trade mixed with yields trading in a 2bp range during the session. Cash

yields (Last / 1d chg / L..H): 2Y (0.5619% / -0.1bp / 0.5597%...0.5797%); 5Y

(0.5748% / -0.8bp / 0.5698%...0.5871%); 10Y (0.8036% / +0.4bp /

0.7972%...0.816%); 30Y (1.4152% / +0.7bp / 1.4075%...1.4273%).

- The short sterling futures strip has steepened: W (+ 0.5/2.0 ticks); R

(flat/-0.5 ticks); G (- 0.5/1.0 ticks); B (+ 1.0 tick)